I could be wrong, but wasn't their main problem not that they invested a lot of their money in long term bonds and couldn't afford to wait for them to mature?

No-Description-9910 t1_jdul7or wrote on March 27, 2023 at 9:11 AM

#2,387,257

Replying to Vodac121 (#2,386,393)

With the most un-sexy name possible.

LordOfTheDerp t1_jdusoff wrote on March 27, 2023 at 10:53 AM

#2,388,150

Wish FCB would give me more than .03 interest rate on my savings account before they bought this albatross.

[deleted] t1_jduu5ma wrote on March 27, 2023 at 11:11 AM

#2,388,338

Replying to LordOfTheDerp (#2,388,150)

[removed]

[deleted] t1_jduux51 wrote on March 27, 2023 at 11:20 AM

#2,388,444

Replying to MajesticWaterBuffalo (#2,387,218)

[removed]

[deleted] t1_jduz724 wrote on March 27, 2023 at 12:04 PM

#2,389,071

Replying to MajesticWaterBuffalo (#2,387,218)

[removed]

SamurottX t1_jdv3r6e wrote on March 27, 2023 at 12:46 PM

#2,389,794

Replying to MajesticWaterBuffalo (#2,387,218)

Yes, it was mainly a short term liquidity problem. So as long as the purchasing bank has the ability to cover things in the short term, then it's all good. There's still a risk that things hit the fan, but a larger bank would be able to weather a larger run on their deposits.

nasty_nater t1_jdv41vv wrote on March 27, 2023 at 12:49 PM

#2,389,845

Replying to LordOfTheDerp (#2,388,150)

Dude why would you even have savings there? There’s HYSAs with 4.5%+.

[deleted] t1_jdv6kra wrote on March 27, 2023 at 1:10 PM

#2,390,264

Replying to Vodac121 (#2,386,393)

[removed]

yawetag12 t1_jdvhra2 wrote on March 27, 2023 at 2:34 PM

#2,392,132

Replying to Vodac121 (#2,386,393)

>First Citizens Bank

36th largest bank in the nation. Over $100 billion in assets.

[deleted] t1_jdvkhnh wrote on March 27, 2023 at 2:53 PM

#2,392,588

Replying to LordOfTheDerp (#2,388,150)

[removed]

LordOfTheDerp t1_jdvr2qn wrote on March 27, 2023 at 3:37 PM

#2,393,521

Replying to nasty_nater (#2,389,845)

Gotta have a day off to get shit done. I'm a wage slave. Golden handcuffs and all.

[deleted] t1_jdvs0wm wrote on March 27, 2023 at 3:43 PM

#2,393,672

[removed]

cheesepuff07 t1_jdvtzmb wrote on March 27, 2023 at 3:56 PM

#2,393,960

Replying to LordOfTheDerp (#2,393,521)

…what? within 5 minutes you can have your account setup and funded solely online

127-0-0-1_1 t1_jdvu1b9 wrote on March 27, 2023 at 3:56 PM

#2,393,971

Replying to LordOfTheDerp (#2,388,150)

How do you think they’re going to get a higher interest rate for you? This is practically free money. Not only do they get 16.5b in arbitrage if they can maintain depositor liquidity, but the latter is extremely easy now that the fed is offering collateralized loans for federal bond assets at cost.

[deleted] t1_jdvwodb wrote on March 27, 2023 at 4:13 PM

#2,394,316

Replying to [deleted] (#2,386,184)

[removed]

[deleted] t1_jdvx0qe wrote on March 27, 2023 at 4:16 PM

#2,394,364

[removed]

IvanKozlov t1_jdvyfek wrote on March 27, 2023 at 4:24 PM

#2,394,565

Replying to LordOfTheDerp (#2,393,521)

You can literally set up an account with Betterment right now all online and have a 4.5% interest savings account today.

jaydec02 t1_jdw5rvg wrote on March 27, 2023 at 5:11 PM

#2,395,562

Replying to Vodac121 (#2,386,393)

I genuinely thought First Citizens was some small time bank in North Carolina lol. I had no idea it was this big

t-poke t1_jdw8liq wrote on March 27, 2023 at 5:29 PM

#2,395,996

Replying to LordOfTheDerp (#2,393,521)

It takes 5 minutes to open a HYSA and move your money over. You can probably do it on your phone while taking a shit.

Milyardo t1_jdw9up2 wrote on March 27, 2023 at 5:37 PM

#2,396,135

Replying to LordOfTheDerp (#2,388,150)

The assets of SVB are good. SVB failed only because it wasn't liquid enough to prevent a run. The only reason to be concerned if is First Citizens doesn't balance long term assets like SVB's bonds with short term ones or cash.

FatherDotComical t1_jdwryr2 wrote on March 27, 2023 at 7:32 PM

#2,398,595

Replying to jaydec02 (#2,395,562)

I was sitting here looking at the little dumpy homey location down the street from me (and to be honest they all look like they were decorated by grandma's and never updated) and I was like "You?! You can buy that?!"

djdeforte t1_jdx1b5c wrote on March 27, 2023 at 8:31 PM

#2,399,863

Replying to jaydec02 (#2,395,562)

We got them here in CT… and here I thought it was a small New England Bank…

No-Reach-9173 t1_jdx5tgs wrote on March 27, 2023 at 9:00 PM

#2,400,505

Replying to IvanKozlov (#2,394,565)

Does betterment actually have HYSA I thought they just did regular/fractional investments via "AI"?

IvanKozlov t1_jdx7ci3 wrote on March 27, 2023 at 9:10 PM

#2,400,711

Replying to No-Reach-9173 (#2,400,505)

They do. They have robo investing as their original main draw, but they also have HYSA accounts, checking accounts, IRAs, among other things. I've been a customer of theirs for a few years.

ShittyFrogMeme t1_jdxvzzi wrote on March 28, 2023 at 12:06 AM

#2,404,435

Replying to No-Reach-9173 (#2,400,505)

Betterment has a cash account but you are better off just buying treasuries yourself or, if you value simplicity, just buying VUSXX.

SuicideNote t1_jdy78wu wrote on March 28, 2023 at 1:30 AM

#2,406,251

Replying to jaydec02 (#2,395,562)

They have dump of an aging headquarters. They once had a plan to build a bank tower in downtown like everyone else but that never materialized.

It's a shame because they demolished a historic building in downtown for the tower they never built.

sciguy52 t1_jdymrrk wrote on March 28, 2023 at 3:28 AM

#2,408,534

Replying to Milyardo (#2,396,135)

And yet further up the reddit news thread it said it was going to cost $20 billion for the serfs....er I mean "the other banks" to pay for the bail out because SVB did NOT have enough assets.

[deleted] t1_jdywtvc wrote on March 28, 2023 at 5:07 AM

#2,410,055

Replying to SamurottX (#2,389,794)

[removed]

dclxvi616 t1_jdyz482 wrote on March 28, 2023 at 5:33 AM

#2,410,388

Replying to sciguy52 (#2,408,534)

The two statements are not mutually exclusive: "SVB did not have enough liquid assets," & "The assets of SVB are good."

It's like if you put all your cash into savings bonds that you cannot redeem for a 1-year holding period and don't leave yourself anything to buy groceries with. You are financially ruined in the moment, but your bonds are still good assets.